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JAMB Principles of Accounts 1998 Question 49

Question 49

Public Sector Accounting

Money not required to meet chargeable expenditure in any fiscal year under cash accounting, should be

  1. A.surrendered to the consolidated revenue fund
  2. B.carried forward to the next financial year
  3. C.reserved to meet any deficits or contingencies
  4. D.returned to the taxpayer.
Show the answer and explanation

Answer: A (surrendered to the consolidated revenue fund)

Explanation

Unspent appropriations lapse at year end and are paid back into the Consolidated Revenue Fund.